Jump follows federal rule change allowing 30-year ams on insured mortgages
Canada Mortgage and Housing Corporation (CMHC) reported a significant increase in homeowner mortgage insurance demand during the second quarter of 2025, driven by falling interest rates and new federal mortgage rules.
The Crown corporation’s quarterly financial report showed transactional homeowner units reached 28,132 for the six-month period ending June 30, representing a 28% increase from 22,038 units during the same period in 2024.
“It’s encouraging to see these increases in the number of homeowner units insured over the first two quarters of this year,” said Michel Tremblay, CMHC’s chief financial officer and senior vice-president of corporate services. “It means our transactional mortgage insurance is helping more people purchase homes, and that it supports a strong housing finance system in Canada.”
The surge follows recent federal changes allowing 30-year amortization periods on insured mortgages, combined with declining borrowing costs that have stimulated housing market activity.
Multi-unit residential insurance volumes remained robust, totalling $31.4 billion in the first half of 2025, up marginally from $31.2 billion during the corresponding period last year. New construction drove much of this demand, accounting for $19.6 billion in insured volumes across 55,551 units, though this represented a slight decrease from 60,692 units in 2024’s first half.
The housing market showed signs of cooling during the quarter. MLS home prices averaged $668,000 in the first six months of 2025, down 2% from the previous year, while sales averaged 454,000 seasonally adjusted annual rate units, also declining 2% year-over-year.
Mortgage arrears remained historically low at 0.30%, up slightly from 0.28% in the second quarter of 2024 but still below long-term trends. CMHC reported net income of $853 million for the six-month period.
Government housing program spending increased substantially, with the Housing Accelerator Fund receiving an additional $516 million and the Canada Community Housing Initiative gaining $299 million compared to the previous year. These increases were partially offset by reduced funding for the Affordable Housing Fund and Affordable Housing Innovation Fund.
CMHC’s mortgage insurance capital stood at $11.9 billion as of June 30, representing 195% of minimum capital requirements. The corporation maintains insurance coverage on 19.9% of Canadian residential mortgages, with total insurance-in-force reaching $452 billion.
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